Provincial debt restructuring in Argentina.
Regulation of public credit and debt sustainability during the periods 1996-2002 and 2014-2021
Keywords:
Foreign currency, fiscal federalism, subnational debt, restructuringAbstract
The paper analyzes the fiscal and financial trajectories of the Argentine provinces prior to the provincial debt restructuring processes during 2002-2003 and 2020-2021. Several provincial jurisdictions renegotiated their payment obligations in those years, with the particularity that different monetary regimes and subnational debt controls were applied. The main results of the article show a high correlation between the provinces that began restructuring processes and an indicator of the provincial financial trajectory that is generally omitted in the conventional literature on debt controls: the majority composition of its debts in foreign currency. On the contrary, the correlation is lower with respect to the size of the fiscal deficit. It is only evidenced for a third of the cases analyzed in both periods. The study provides relevant inputs to consider financing alternatives that preserve the provincial payment capacity.
Downloads
Published
How to Cite
Issue
Section
ARK
License
Copyright (c) 2024 Alcides Bazza, Magalí Mercedes Mahieu
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright notice
Authors retain copyright and grant the journal the right to be the first publication of the work as licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of authorship of the work and initial publication in this journal.
Authors may separately enter into additional arrangements for non-exclusive distribution of the version of the work published in the journal (e.g., placing it in an institutional repository or publishing it in a book), with an acknowledgement of initial publication in this journal.
Authors are allowed and encouraged to disseminate their work electronically (e.g. in institutional repositories or on their own website) before and during the submission process, as it may lead to productive exchanges, as well as earlier and higher citation of published work (see The Effect of Open Access).
